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Defence Stocks Plunge 9% with Mazagon Dock, Cochin Shipyard, HAL, and others Leading the Fall

Defence stocks fell sharply on August 20, with Mazagon Dock leading the downturn by 9%, reflecting widespread declines across the sector despite previously strong performances.
Defence Stocks Plunge 9% with Mazagon Dock, Cochin Shipyard, HAL, and others Leading the Fall

Defence stocks plummeted on August 20, led by a 9% drop in Mazagon Dock amid intense selling pressure. This significant decline underlines the sector’s volatility, despite Mazagon Dock’s strong performance in the June quarter.

Mazagon Dock’s stock hit an intraday low of Rs 4,278.80 on the BSE, marking a 9.4% decrease from the previous day. This marked a continued decline over three days, totaling a 13.85% fall. The stock has fallen 26% from its July peak during a defence sector rally.

Other defence stocks also suffered, dragging down the sector. Cochin Shipyard dropped 4.01% to Rs 2,069.10 on the NSE, and Paras Defence and Space Technologies fell 2.19% to Rs 1,241. The broader impact was felt across the board as most defence shares ended in the red.

Hindustan Aeronautics Ltd’s shares decreased by 1.18% to Rs 4,735.80, despite a significant gain of 150.26% over the past year. In contrast, Mishra Dhatu Nigam and Bharat Dynamics also experienced declines of 1.77% and 1.62% respectively, reflecting a tough day for defence stocks.

This downturn coincided with the Defence Minister’s announcement of ambitious export targets, setting a goal of Rs 50,000 crore by 2028-2029, following a record Rs 21,083 crore in defence exports for FY 2023–2024.

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